[pedalpete]

Zoom and the pandemic have had an effect here, but so has the success of companies not based in the US. Atlassian, Canva, SafetyCulture (to name a few) in Australia has not only helped grow the local VC ecosystem, but also made US VCs recognize that Australia punches above it's weight.

VCs new they had to make investments in Asia and South America as they saw more successes come out of those regions.

Technology is global, so VCs can't afford not to be.

However, I believe most of these VCs still expect companies to be set-up as Delaware Corps. Anybody have any insight on that?

[irjustin]

> However, I believe most of these VCs still expect companies to be set-up as Delaware Corps. Anybody have any insight on that?

This is rapidly becoming less true. YC stopped requiring/recommending a Delaware corp back in W20.

There are countries that are more "investor" friendly where the laws about corporate ownership, governance and investment are clear, and enforceable. Singapore being one such. (Last thing an investor wants is to send money and not get any ownership that the courts will respect).

As long as you're setup in one of those countries, lack of Delaware is not a true blocker anymore. Mostly it's whether the fund is comfortably focused in the region.

[simonebrunozzi]

> There are countries that are more "investor" friendly

Which countries?

[brudgers]

Atlassian was bootstrapped for about a decade. It was profitable, had more than 200 employees, and was turning about $60 million in revenue before taking outside funding. It was far more late stage than the vast fraction of companies.

[kenneth]

We invest in global companies and usuals see Delaware C Corps. On occasion we'll fund a foreign entity but we do look for jurisdictions with a developed western legal system.

I would say the most common after Delaware is Hong Kong and Canada.

There's some jurisdictions where we still expect the company to form in Delaware, like our African or Latam investments.

[csomar]

> However, I believe most of these VCs still expect companies to be set-up as Delaware Corps. Anybody have any insight on that?

If you are taking money from US investors, being a Delaware C-Corp is what they are used to deal with and what they are comfortable with.

If you are selling internationally, a US setup might make lots of sense.

[SMAAART]

It's the Golden Rule: who's got the gold (money), makes the rules.

[Fordec]

And if your rules are to deliberately avoid opportunity, don't be shocked if somebody else makes the money not following your rules. Free market applies to the entire economy, not "the whole economy except the VC part because we're special".

[SMAAART]

Today's role-breakers are tomorrow's rile makers whose lunch will be eaten by tomorrow's rule-breakers.

And the cycle continues.